HSBC and Barclays are facing a $12 billion lawsuit in the United States over their alleged roles in an offshore trust business suspected of large-scale fraud and linked to the Jeffrey Epstein scandal. The case centers on La Hougue, a now-defunct Jersey-based trust operation that has been accused by media investigations of fabricating loans and documents to conceal asset transfers, evade tax, and mislead creditors.
The lawsuit, filed in a federal court in Colorado, has been brought by American heiress Tanya Dick-Stock and her husband, Darrin Stock. They allege breach of trust and dishonest assistance by Barclays, HSBC, and related entities in connection with the transfer of assets from a Colorado trust established by Dick-Stock’s late father, John Dick. The trust required that any successor trustee be a US-regulated institution, but the claim argues that trustees improperly appointed La Hougue instead and transferred assets offshore in what is described as a “fraud on a power.”
Barclays and trust firm Zedra are accused of acting as trustees, while HSBC is alleged to have provided dishonest assistance, including by taking on accounts linked to La Hougue after the trust structure moved to Panama. HSBC is understood to be assessing its precise connection to the claims. The lawsuit alleges that La Hougue engaged in decades of fraudulent activity involving fake loans, backdated documents, and commingled accounts, ultimately diverting funds away from the named beneficiary. The total damages claimed amount to $12 billion.
La Hougue has previously been linked to high-profile figures connected to the Epstein scandal. Former trustees have admitted in a US court that the firm sometimes fabricated paper trails for itself and clients, although there has been no formal finding of wrongdoing against the company. Late last year, La Hougue was named among 72 individuals and organisations in proposed US legislation seeking the release of Treasury records linked to Epstein.
Further scrutiny has come from earlier investigations that uncovered references to Kevin and Ian Maxwell, brothers of Ghislaine Maxwell, in La Hougue documents. Papers reviewed during a 2021 investigation suggested involvement in unusual circular debt arrangements, alongside Maxwell family associate and former solicitor Malcolm Grumbridge. Grumbridge, who later left the legal profession after admitting reckless conduct, has denied wrongdoing and said La Hougue was not his client. None of the Maxwells or Grumbridge are parties to the lawsuit.
The case also revisits a cache of more than 350,000 documents discovered in Jersey in 2012, which the claimants say reveal how La Hougue allegedly stole from Dick-Stock’s trust to repay wealthy clients drawn to services such as tax avoidance and document creation. The Maxwells have denied any involvement in La Hougue’s operations or knowledge of wrongdoing, with Kevin Maxwell dismissing claims linking him to Epstein-related financial dealings as fiction.
The lawsuit adds to the reputational challenges faced by Barclays following the fallout from former chief executive Jes Staley’s relationship with Epstein, which led to his departure in 2021. HSBC was also among the banks that previously held accounts for Epstein. Both Barclays and HSBC declined to comment on the current litigation, while Zedra was approached for comment.
